The committee reviewed the
asset allocation and spending policies and the investment performance of the
NMU Endowment Fund. Mr. David Wetzel from Fund Evaluation Group presented
information related to each of these topics and made a couple of
recommendations which the committee discussed. Based on the discussion
the committee believes changes to the University’s asset allocation policy
would be appropriate. We recommend that the Board of Trustees approve the
following changes: reduce the Large Capital Stocks target from 40% to 35%
and add international emerging markets up to 2.5% and international small
capital stocks up to 2.5%. In addition, the target for U.S. Bonds would
be lowered from 30% to 27.5% and real estate would be added up to 2.5%

.

OPEN AGENDA

The committee reviewed a report
prepared by Mr. Riipi on the adequacy of the internal
audit function staffing at NMU. The report was for information and no
action is required at this time.

The committee was updated on
the Office of the Auditor General Performance Report. The report was
published by the Office of the Auditor General on August 19th.
The published report included the University’s preliminary response and the
University will be sending an updated response to the legislature by October 19th.

In your Board material is a
copy of the University’s Financial Report for 2004-05. The Committee recommends
approval of the financial report; a recommendation is in the formals.

Mr. Riipi
reported to the committee that this would be the normal time to seek bids for
our external auditors. The committee asked the administration to seek
bids for the next three to five years and report back to the committee in
December.

Mr. Leach updated the
committee on the fiscal year 2005-2006 Operating Budget. The report was
for information and no action is required.

Dr. Roy presented to the
Committee the Facilities Five Year Master Plan and Capital Outlay Project
Request. Copies of the plan and capital outlay request are in the
formals. The Finance Committee recommends approval.

Included in the formals is a
recommendation to move unexpended funds in the Cohodas Chair Professorship
account to the endowment fund. The committee recommends approval of this
recommendation.

Also included in the formals
is a 2006-2008 Reduction in Force Plan. This would extend the existing
plan until July 2008. The committee recommends approval.

Mr. Leach reviewed with the
committee the Key Indicators. No action is required.

Dr. Roy presented the
Facilities 5-Year Master Plan and the Capital Outlay Project Request.
Copies are in the formals. The committee recommends approval.

The committee was updated on
the current University capital projects. The report was for information
and no action is required.

Dr. Roy reviewed with the
committee the purchase of 1744
Schaffer Avenue. The recommendation is in
the formals and the committee recommends approval.